Down Payment and 2006 Tax incentive - GreenHybrid

lkewin · #1 (**permalink**) 10-21-2005, 01:52 PM

I need to check with my accountant on this, but just had someone tell me that the Federal Government will look at the deposit I put down on my '06 a few weeks ago as the date I purchased the vehicle, thereby voiding my plans to take deleivery in January for the 2006 credit. Anyone else heard of this?

ElanC · #2 (**permalink**) 10-21-2005, 02:21 PM

Quote:

Originally Posted by lkewin

I need to check with my accountant on this, but just had someone tell me that the Federal Government will look at the deposit I put down on my '06 a few weeks ago as the date I purchased the vehicle, thereby voiding my plans to take deleivery in January for the 2006 credit. Anyone else heard of this?

I think this is nonsense. The energy bill passed by congress says:
'For purposes of subsection (a), the new qualified hybrid motor vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a new qualified hybrid motor vehicle placed in service by the taxpayer during the taxable year'.

'Placed in service' is not when you made a deposit on it. It's when you drove it off the dealer's lot.